Petroteq Energy Inc (OTCMKTS:PQEFF) is enjoying a lot of attention from investors and analysts. With its massive potential, its role in the oil and gas energy industry and the anticipated preference for its products, the rush for its stock is likely to go up, especially if it can turn its potential into real results.
Take a look at the stock’s price movement in the last year:
Petroteq Energy, Inc was established by Aleksandr Blyumkin in January 2008 and its head office is located in Studio City, California. The firm specializes in the implementation and design of original major oil processing and extraction technologies. It carries out its operation from two divisions; Mining Operations and Oil Extraction & Processing. The Mining Operations division focuses on the extraction and mining of tar sands. The Oil Extraction & Processing Operations unit focuses on the commercial production and sale of hydrocarbon products.
As a fully unified oil and gas firm which engages in the operations listed above, the firm possesses sustainable technology which is environmentally safe for its extraction of shallow oil deposits, oil shale deposits and heavy oils from oil sands. Petroteq’s proprietary process release zero amounts of greenhouse gas, no waste whatsoever and has no requirement for high temperatures. More recently, the firm has doubled its efforts towards the expansion of its production capacity at the Asphalt Ridge heavy oil extraction facility situated beside Vernal, Utah and the development of its oil sands assets. The firm has a minor ownership stake for an exploration and production firm located in southwest Texas and held by Accord GR Energy Inc. Furthermore, the firm, through PetroBLOQ, its fully owned subsidiary, LLC, is looking to create the first blockchain based solution developed exclusively for the supply chain requirements of the oil & gas sector.
Very recently, the firm confirmed that it had gone into a 6-month contract with Firebird Logistics LLC for total control over of its production from the major oil extraction facility located in Asphalt Ridge, Utah. As a major provider of distribution, logistics and transport services, the agreement provides Petroteq with the opportunity to access numerous refineries within Firebird’s coverage.
The company has already succeeded in carrying out a test on all the main processing systems within the facility and recently commenced the carrying out of test runs for on the utility system in order to prepare for the launching of its commercial production.
This contract is expected to continue using a month-to-month basis that comes after the first six months of the agreement. The monthly value will be derived using the calendar day mean of the NYMEX settlement value for the West Texas Intermediate Light Sweet Crude Oil, reduced by $6.50 for each barrel and further adjusted for water and basic sediment.
President of Firebird LLC, Donovan Cameron outlined that Petroteq’s oil which is gotten from its oil sands is of very high quality, as it is crude oil with little heavy metal content, zero paraffin or waxes, and little sulfur content. With a high level of content for aromatic hydrocarbons and valuable diesel fraction hydrocarbons, Petroteq’s oil is of enough quality to meet refineries’ quality requirements and specifications.
In February 2018, the firm publicly announced that it had completed the improvements to its Asphalt Ridge Utah Plant which is to increase its production capacity to a thousand barrels per day. At the end of the project, A fin fan cooler, as well as the main mixing tank and second mixing tank were re-installed at the new site, a new and improved hot oil heater was installed which is better that the former steam heater used, additional new pumps were set up to pump solvent and oil more efficiently, the main structure was completely reassembles, A Motor Control Center was set up to house any additional expansion wiring for motors, pumps and mechanical equipment in the even that capacity needs to be increased and Earth berms were set up for environmental protection.
Chief Executive Officer, Alex Blyumkin explained that this reassembly of the plant was done to reduce future costs going forward when compared to the previous site. The new site, along with the addition of the new motor control center and new pumps to move its environmentally safe solvent and oil more efficiently puts them in a place where it can start increasing production levels in the next quarter. The new site also delivers on its promise to recover oil in a manner that has a minimal environmental impact.
For 2017, there were no revenues returning to the trend of no revenues generated in the last five years except for 2016 where it brought in revenues of $0.2 million the first record of revenue since in years. It is anticipated that in the future come, the firm will generate sales revenues from its operations.
In the same period, cost of sales dropped by 70%, an indicator that the level of sales activity dropped in the year. The firm is expected to see the cost of sales grow along with revenue in the next few years of production. Gross loss for the financial year was $0.43 million down from $1.2 million in the previous period. The trend of results continued all the way to selling, general and admin expenses which fell by a massive 67% to $1.6 million in the period.
The net loss from operations and net loss amounted to $4.27 million and $7.9 million (largely as a result of interest and additional expenses) respectively for the period.
PQEFF has the right product and a very interested market, it may just be a matter of time before it begins to rake in profits by the loads.
Disclosure: We have no position in PQEFF and have not been compensated for this article.